Milwaukee Weather
Koss Exec Accused of Embezzling MoneyMILWAUKEE (AP) -- An executive of Milwaukee-based Koss Corp. was arrested and charged with wire fraud on Monday, accused of embezzling $4.5 million from the headphone manufacturer and spending much of it on clothing and jewelry. WISN-TV reported that a federal complaint named Sujata Sachdeva, a vice president of finance who has worked at the headphone manufacturer since 1992. More than a dozen federal agents took her into custody and removed items from her home in Mequon. Sachdeva could not immediately be reached for comment and it wasn't immediately clear if she had a lawyer. The voice mail box at her home number was full Monday evening. Koss, which makes headphones, speakerphones, computer headsets and other audio accessories, said the Nasdaq halted trading of its stock earlier Monday due to the discovery of unauthorized transactions. The company said Sachdeva had been put on administrative leave pending the results of an internal investigation to determine if the transactions affected the company's financial statements. It also said that law enforcement officials were involved in the case. WISN-TV reported that the complaint accused Sachdeva of stealing $4.5 million from Koss between September and November, and spending the money at clothing and jewelry stores across the Milwaukee area, including $1.3 million at Valentina boutique in suburban Mequon. It said the complaint indicates American Express flagged her account because of the nature of some wire transfers and notified authorities and the company. ------ (Copyright 2009 by The Associated Press. All Rights Reserved.) |
     
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